TFSAs are great for long or short-term goals because your savings can grow more quickly when you don’t have to pay tax on investment income.

How to Apply

A Tax-Free Savings Account (TFSA), is an account where you can save or invest up to $10,000 a year.1 Unlike other types of savings, you’re not taxed on the income you earn. It’s a great way to save for your short or long-term goals; because it lets your savings grow – tax-free.

What are the benefits of TFSAs?

Tax-free growth

You don’t pay taxes on the investment income or growth earned in your TFSA - helping you build your savings faster. See how much you could save with the TFSA Savings Calculator.

Open a TFSA today

1 Annual contribution limit for 2015. The annual contribution limit was $5,000 from 2009 to 2012 and $5,500 from 2013 to 2014. Contribution limits are subject to revision by the federal government. 2 The amount you withdraw can be re-contributed to your TFSA the following year or years without impacting your contribution room.

TD makes it easy to save

At TD, you'll find a range of Tax-Free Savings Accounts (TFSAs) to help you save money. Whether you're putting money aside for a down payment on a house, saving for a major purchase like a car or a vacation, building your rainy day fund or making sure you have enough for a comfortable retirement, a TFSA can help. Each TFSA can help in different ways, depending on your personal goals and finances. See which one is right for you.

Open a TFSA today

If you have an account with TD Canada Trust you can apply now
Apply now

1 Annual contribution limit for 2015. The annual contribution limit was $5,000 from 2009 to 2012 and $5,500 from 2013 to 2014. Contribution limits are subject to revision by the federal government. 2 The amount you withdraw can be re-contributed to your TFSA the following year or years without impacting your contribution room.3 The holder of a TFSA with TD must be of the age of majority in their province of residence.

Have a few questions?

We’ve provided answers to some of the most common questions people have about TFSAs. Take a look below to find helpful information.

About TFSAs

A Tax-Free Savings Account (TFSA) is a registered savings account regulated by the federal government. Through a TFSA, you can put your savings into eligible investments and not pay tax on the investment income you earn.

The idea behind TFSAs is to make the benefits of tax-free savings available to as many Canadians as possible. For that reason, TFSAs are available to every Canadian resident who is 18 years of age or older and has a Social Insurance Number (SIN).
However, to open a TFSA at TD Canada Trust, you must have achieved age of majority in the province in which you live. So, if you live in British Columbia, Newfoundland and Labrador, Nova Scotia or New Brunswick, then you can’t actually open a TFSA until you are 19, which is the age of majority in those provinces. However, you will accumulate contribution room from the time you are 18.

An RSP is designed specifically to provide you with income after you retire. Your contribution limit is based on your income and the contributions you make are tax-deductible, but you do pay tax on the money when you receive it as income.
A TFSA is not designed specifically for retirement, but to help you save money for a wide range of goals. The amount you can contribute is not based on your income and your contributions are not tax-deductible. You can withdraw your money any time you want it5, and you don’t pay tax on those withdrawals. You also don’t lose contribution room when you make a withdrawal – you can re-contribute the amount withdrawn to your TFSA in the following year or any year after that.

There is no deadline for contributions to a TFSA, and your unused contribution room is carried over indefinitely. If you’re thinking of making a withdrawal closer to the end of the year, be sure to do it by December 31st to have that withdrawal amount added back to your contribution room the next year.

Contributions

The TFSA contribution limit for 2015 is $10,0001. You can also carry forward any unused contribution room from previous years, the annual contribution limit was $5,000 from 2009 to 2012 and $5,500 from 2013 to 2014.

1 Annual contribution limit for 2015. The annual contribution limit was $5,000 from 2009 to 2012 and $5,500 from 2013 to 2014. Annual TFSA contribution limit is subject to change by the federal government.

You can carry forward any uncontributed amounts into future years indefinitely. So, for 2015, you can contribute up to $10,000 (annual contribution limit for 20151) PLUS any unused contribution room from previous years (up to $5,000 annually from 2009 to 2012 and $5,500 from 2013 to 2014).

1 Annual TFSA contribution limit is subject to change by the federal government.

No, you can’t contribute directly to your spouse’s TFSA as you can with a spousal RSP. However, you can give your spouse money, which they can then contribute to their own TFSA. Any income your spouse earns on the money in their TFSA is theirs and will not be attributed back to you.

No, you don’t have to pay tax on the amounts you withdraw. Because TFSA withdrawals don’t count as taxable income, they don’t affect Federal income-tested benefits or tax credits you may receive, including the Canada Child Tax Benefit, the Working Income Tax Benefit, the Goods and Services Tax Credit and the Age Credit. TFSA withdrawals also won’t reduce benefits based on your income level, such as Old Age Security, the Guaranteed Income Supplement and Employment Insurance benefits.

Anything you want. You could wait until you retire and use it to supplement retirement income you have from pensions, RSPs or other sources, but you can also use it for short-term savings goals like a new car or a vacation, or for needs that arise suddenly like repairs to your home.

No, you never lose your contribution room – in fact, you can recontribute amounts you have withdrawn. You have to wait until the next year to recontribute, but you can carry forward the recontribution room indefinitely. For example, say you contribute $5,0001 to your TFSA in January 2012 and another $5,500 in January 2010. Then, in the summer of 2013, you withdraw $3,000 to pay for some repairs to your home. You can’t recontribute that $3,000 in 2013, but in 2014 it will be added to your contribution room again.

1 The annual TFSA contribution limit from 2009 to 2012 was $5,000. The annual TFSA contribution limit from 2013 to 2014 was $5,500. The annual TFSA contribution limit for 2015 is $10,000. Annual TFSA contribution limit is subject to change by the federal government. Excess contributions to a TFSA will be subject to a penalty tax of 1% per month based on the highest excess TFSA amount in that month. The penalty will be calculated on a monthly basis until the excess amount is withdrawn.

Investments

You can hold many of the same investments you hold in your RSP in your TFSA, including mutual funds, GICs, stocks and bonds.
Note: The above information about the Tax-Free Savings Account is based on the information currently available from the Canadian government. To learn more or to check for updates, visit the TFSA information page on the Canada Revenue Agency website.

1 Annual contribution limit for 2015. The annual contribution limit was $5,000 from 2009 to 2012 and $5,500 from 2013 to 2014. Contribution limits are subject to revision by the federal government.

2 The amount you withdraw can be re-contributed to your TFSA the following year or years without impacting your contribution room.